American Riviera Bancorp Announces Results for the Fourth Quarter of 2023

SANTA BARBARA, Calif.–(BUSINESS WIRE)–#BankonBetter–American Riviera Bancorp (“Company”) (OTCQX: ARBV), holding company of American Riviera Bank (“Bank”), announced today unaudited net income of $10.5 million ($1.82 per share) for the year ended December 31, 2023, compared to $13.5 million ($2.38 per share) earned in the same reporting period in the previous year. Unaudited net income was $2.2 million ($0.38 per share) for the quarter ended December 31, 2023, compared to $2.6 million ($0.46 per share) in the previous quarter and $4.0 million ($0.70 per share) earned in the same reporting period in the previous year. Earnings for the fourth quarter of 2023 were impacted by a decision to reposition $15.6 million of lower-yielding securities into new higher-yielding securities of similar duration, resulting in a $544,000 pre-tax loss on sale with an approximate 18 month earn back.


Jeff DeVine, President and CEO of the Company and the Bank, stated, “Although 2023 net income was impacted by rising deposit costs and strategic decisions we made to invest in our technology, the Company was still able to increase shareholders’ equity and tangible book value per share by 15% in the last year. Our balance sheet has adjusted to the higher rate environment and net interest income and net interest margin are improving. The core and digital banking upgrade completed in the fourth quarter of 2023 will increase efficiencies and enhance client functionality in 2024.”

Fourth Quarter Highlights

  • The Bank has the highest “Super Premier” rating for financial performance from the Findley Reports and has maintained a “5 Star – Superior” rating from Bauer Financial as of September 30, 2023.
  • The Bank was rated “Outstanding” by the Federal Deposit Insurance Corporation in 2023 for its performance under the Community Reinvestment Act.
  • Total shareholders’ equity of $100.6 million at December 31, 2023, has increased $8.3 million or 9.0% from the prior quarter-end and $13.5 million or 15.5% from the prior year-end. The substantial increase is attributable to retained earnings as well as the improved market value of our securities portfolio.
  • Tangible book value per share of $16.59 at December 31, 2023, has increased $1.44 or 9.5% from the prior quarter-end and $2.16 or 15.0% from the prior year-end.
  • Return on average assets for the fourth quarter ended December 31, 2023, unadjusted for the discretionary $544,000 pre-tax loss on sale of securities, was 0.69%, and return on average equity was 9.36%. Return on average assets was 0.82% and return on average equity was 11.02%, respectively for the entire year of 2023.
  • Total loans were $946.4 million at December 31, 2023, an increase of $5.3 million or 0.6% from the prior quarter-end, and an increase of $38.7 million or 4.3% from December 31, 2022. The Bank’s loan-to-deposit ratio at December 31, 2023, was 90.2%.
  • Non-interest-bearing demand deposits totaled $443.1 million at December 31, 2023, a decrease of $14.7 million or 3.2% from the prior quarter-end, and a decrease of $35.4 million or 7.4% from December 31, 2022. Non-interest-bearing demand deposits at December 31, 2023, represent 42.2% of total deposits, an increase from 41.1% one year ago.
  • Interest-bearing deposits totaled $606.6 million at December 31, 2023, a decrease of $37.1 million or 5.8% from the prior quarter-end, and a decrease of $78.4 million or 11.4% from December 31, 2022. The Federal Reserve’s actions over the last two years to rapidly increase interest rates have caused a shift in interest-bearing depositor behavior as some clients have decided to reinvest their excess cash in non-FDIC insured, external investment products.
  • The aforementioned decrease in total deposits in the fourth quarter of 2023 required the Bank to increase its Federal Home Loan Bank (“FHLB”) advances from $35.0 million at September 30, 2023, to $75.0 million at December 31, 2023, which resulted in a $245,000 increase in interest expense on borrowings in the fourth quarter of 2023 versus the prior quarter.
  • Total cost of deposits increased to 1.00% for the fourth quarter of 2023, compared to 0.90% in the prior quarter, and 0.21% for the same quarter in the prior year. Total cost of funding sources increased to 1.23% for the fourth quarter of 2023, compared to 1.06% in the prior quarter, and 0.26% for the same quarter in the prior year. Overall funding costs for the Company have increased due to Federal Reserve policy but remain modest compared to industry averages based on our relationship banking focus.
  • On-balance sheet liquidity continues to be substantial with $227.0 million of cash, due from banks, and available-for-sale (“AFS”) securities market value at December 31, 2023.
  • Access to available sources of liquidity including fed funds lines of credit with correspondent banks, unused secured borrowing capacity with the FHLB, and unused secured borrowing capacity with the Federal Reserve totaled $364.4 million at December 31, 2023.
  • Allowance for Credit Losses (“ACL”) was 1.23% of total loans at December 31, 2023, compared with 1.24% at September 30, 2023, and 1.17% at December 31, 2022. Provision for credit losses for the fourth quarter of 2023 was zero, compared to $8,000 in the prior quarter, and $109,000 for the same quarter in the prior year.
  • The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due, and only $0.6 million or 0.06% of total loans on non-accrual status, which are well supported by collateral or reserves.
  • All Bank and Company capital ratios increased in the fourth quarter of 2023. The Bank’s regulatory capital ratios were all above “well-capitalized” standards.

 

Fourth Quarter Earnings

For the fourth quarter of 2023, unaudited net income was $2.2 million, compared to $2.6 million in the third quarter of 2023, and $4.0 million in the fourth quarter of 2022. The decrease in earnings compared to the prior quarter is primarily attributable to the discretionary $544,000 pre-tax loss from fixed income security repositioning. The decrease in earnings compared to the fourth quarter of the previous year is primarily attributable to increased interest expense and decreased interest income on cash and due from banks.

The Bank continues to grow interest and fees on loans sequentially over the last four quarters from $11.1 million in the fourth quarter of 2022 to $12.6 million in the fourth quarter of 2023, representing a $1.5 million or 13.3% increase. However, the cost of funding has also increased sequentially from the historically low levels that existed prior to the Federal Reserve’s aggressive rate increase policy. Total interest expense has increased from $0.8 million in the fourth quarter of 2022 to $3.6 million in the fourth quarter of 2023.

At the same time, excess cash and due from banks has moved back to a more normalized level as the Federal Reserve has tightened economic conditions, resulting in a decline in interest on cash and due from which was at elevated levels for most of 2022. Interest on cash and due from peaked at $1.3 million for the fourth quarter of 2022, compared to the current level of $0.3 million in the fourth quarter of 2023.

Total interest income for the entire year of 2023 increased by $6.9 million or 14.2% from the prior year, but was offset by a $9.5 million or 490% increase in total interest expense over the prior year. The increase in interest expense is due to higher rates paid on deposits and an increase in borrowed funds.

Non-Interest Income and Expense

Total non-interest income was $0.3 million for the fourth quarter of 2023, compared to $0.7 million for the third quarter of 2023, and $0.7 million for the same quarter last year. In the fourth quarter of 2023, the Bank sold $15.6 million in AFS securities resulting in a $0.5 million pre-tax loss on the trades. Net funds from the disposition were reinvested into new securities with a weighted-average yield of 5.70% resulting in an approximate 18 month earn back. Loan swap fees totaled $0.3 million in the second quarter of 2023, and no loan swap fees were received in the third or fourth quarters of 2023. Other variances between the quarters relate primarily to SBA loan sale premiums, mortgage broker fees and loan prepayment fees.

Non-interest expense was $8.2 million for the fourth quarter of 2023, compared to $7.9 million in the third quarter of 2023, and $8.4 million for the same quarter of the prior year. Expenses in the second, third, and fourth quarters of 2023 are elevated due to the accrual of non-recurring expenses related to technology upgrades. The Bank completed these technology upgrades which are expected to reduce future expenses, enhance customer functionality, and streamline internal processes.

Loans and Asset Quality

Total loans were $946.4 million at December 31, 2023, an increase of $5.3 million or 0.6% from the prior quarter-end, and an increase of $38.7 million or 4.3% from December 31, 2022.

The Bank adopted the Current Expected Credit Losses (“CECL”) accounting standard as of January 1, 2023, and recorded a $1.3 million pre-tax reduction to retained earnings upon adoption, including $0.5 million of additional reserve for unfunded loans recorded in other liabilities. The ACL is $11.6 million at December 31, 2023, with a resulting coverage ratio of 1.23%, as compared to $10.6 million or 1.17% at December 31, 2022.

Loan charge-offs totaled $2,000 and loan recoveries totaled $10,000 for the entire year of 2023. As of December 31, 2023, non-accrual loans totaled $0.6 million, a reduction of $2.1 million compared to the previous quarter-end, and a reduction of $2.5 million from the previous year-end. Credit quality remains strong.

Deposits & Borrowings

Total deposits were $1.05 billion at December 31, 2023, representing a decrease of $51.8 million or 4.7% from September 30, 2023, and a decrease of $113.8 million or 9.8% since December 31, 2022. The decrease in total deposits is attributable to the current rate environment which has caused some clients to reinvest their excess cash in non-FDIC insured, external investment products. The weighted average cost of deposits for the fourth quarter of 2023 was 1.00%, compared to 0.90% for the previous quarter, and 0.21% for the same quarter last year. Non-interest-bearing demand deposits represent 42.2% of total deposits at December 31, 2023, an increase from 41.6% at the prior quarter-end, and 41.1% at December 31, 2022.

At December 31, 2023, the Bank had $65.0 million of short-term, 30 days or less, FHLB advances and another $10.0 million of long-term FHLB advances outstanding. At December 31, 2023, the Company also had $10.0 million drawn on a correspondent bank line of credit at a favorable rate of 3.85% and $18.0 million of subordinated notes outstanding at a favorable rate of 3.75%. The weighted average cost on all borrowings for the quarter was 4.71%, resulting in $0.9 million in interest expense. The $103.0 million of total wholesale funding at December 31, 2023, was a $40.0 million increase from the level of wholesale funding carried at the end of the third quarter of 2023.

The Bank’s liquidity position remained strong with a primary liquidity ratio (cash and cash equivalents, deposits held in other banks and unpledged AFS securities as a percentage of total assets) of 16.4% at December 31, 2023, compared to 17.2% at September 30, 2023.

As of December 31, 2023, the Bank had available and unused, secured borrowing capacity with the FHLB of San Francisco totaling $196.4 million. In addition to availability through the Federal Reserve Bank’s Term Funding Program, the Bank also had $125.0 million of unused fed funds lines of credit with correspondent banks at December 31, 2023. Available contingent funding sources remain robust.

Overall uninsured deposits, excluding public agency deposits that are collateralized, are conservatively estimated to be $387.7 million, or 36.9% of total deposit balances as of December 31, 2023. The actual level of uninsured deposits is lower than the percentage stated above, as our knowledgeable bankers have helped clients obtain more than $250,000 of FDIC insurance with vesting structures such as joint accounts, payable upon death accounts, and revocable trust accounts with multiple beneficiaries. In addition, the Bank can offer up to $50 million of FDIC pass-through insurance to clients via the IntraFi network Insured Cash Sweep (“ICS”) or Certificate of Deposit Account Registry System (“CDARS”) products.

Shareholders’ Equity

Total shareholders’ equity was $100.6 million at December 31, 2023, an $8.3 million or 9.0% increase since September 30, 2023, and an increase of $13.5 million or 15.5% over the prior year. The tax adjusted unrealized loss on securities, which is a component of equity (accumulated other comprehensive income or “AOCI”), decreased $5.8 million or 21.7% from $26.7 million at the end of the third quarter of 2023 to $20.9 million at the end of the fourth quarter of 2023. The Bank fully expects to receive all principal when the investments mature.

Company Profile

American Riviera Bancorp (OTCQX: ARBV) is a registered bank holding company headquartered in Santa Barbara, California. American Riviera Bank, the 100% owned subsidiary of American Riviera Bancorp, is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers on the Central Coast of California. The state-chartered bank opened for business on July 18, 2006, with the support of local shareholders. Full-service branches are located in Santa Barbara, Montecito, Goleta, Santa Maria, San Luis Obispo, and Paso Robles. The Bank provides commercial business, commercial real estate, residential mortgage, construction, and Small Business Administration lending services as well as convenient online and mobile technology. For thirteen consecutive years, the Bank has been recognized for strong financial performance by the Findley Reports and has received the highest “Super Premier” rating from Findley every year since 2016. The Bank was rated “Outstanding” by the Federal Deposit Insurance Corporation in 2023 for its performance under the Community Reinvestment Act.

Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, effects of interest rate changes, ability to control costs and expenses, impact of consolidation in the banking industry, financial policies of the US government, and general economic conditions.

American Riviera Bancorp and Subsidiaries
Balance Sheets (unaudited)
(dollars in thousands)

December 31,

 

December 31,

 

One Year

 

One Year

 

2023

 

 

 

2022

 

 

$ Change

 

% Change

Assets
Cash & Due From Banks

$

19,683

 

$

61,800

 

$

(42,117

)

-68

%

Available-for-sale securities

 

207,271

 

 

223,281

 

 

(16,010

)

-7

%

Held-to-maturity securities, net

 

41,326

 

 

41,293

 

 

33

 

0

%

 
Loans

 

946,411

 

 

907,685

 

 

38,726

 

4

%

Allowance for Credit Losses (a)

 

(11,648

)

 

(10,626

)

 

(1,022

)

10

%

Net Loans

 

934,763

 

 

897,059

 

 

37,704

 

4

%

 
Premise & Equipment

 

13,994

 

 

12,347

 

 

1,647

 

13

%

Goodwill and Other Intangibles

 

4,930

 

 

4,947

 

 

(17

)

0

%

Other Assets

 

43,069

 

 

41,841

 

 

1,228

 

3

%

Total Assets

$

1,265,036

 

$

1,282,568

 

$

(17,532

)

-1

%

 
 
Liabilities & Shareholders’ Equity
Non-interest-bearing Deposits

$

443,070

 

$

478,519

 

$

(35,449

)

-7

%

Interest-bearing Deposits

 

606,612

 

 

685,008

 

 

(78,396

)

-11

%

Total Deposits

 

1,049,682

 

 

1,163,527

 

 

(113,845

)

-10

%

 
Borrowed Funds

 

103,000

 

 

18,000

 

 

85,000

 

472

%

Other Liabilities

 

11,715

 

 

13,945

 

 

(2,230

)

-16

%

Total Liabilities

 

1,164,397

 

 

1,195,472

 

 

(31,075

)

-3

%

 
Common Stock

 

67,388

 

 

66,346

 

 

1,042

 

2

%

Retained Earnings

 

54,177

 

 

44,672

 

 

9,505

 

21

%

Other Capital

 

(20,926

)

 

(23,922

)

 

2,996

 

-13

%

Total Shareholders’ Equity

 

100,639

 

 

87,096

 

 

13,543

 

16

%

 
Total Liabilities & Shareholders’ Equity

$

1,265,036

 

$

1,282,568

 

$

(17,532

)

-1

%

 
Note:
(a) CECL was adopted using the modified retrospective method. Results of reporting periods beginning after 1/1/23 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP.
American Riviera Bancorp and Subsidiaries
Balance Sheets (unaudited)
(dollars in thousands)

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

Assets
Cash & Due From Banks

$

19,683

 

$

26,905

 

$

30,428

 

$

64,252

 

$

61,800

 

Available-for-sale securities

 

207,271

 

 

206,842

 

 

215,951

 

 

223,547

 

 

223,281

 

Held-to-maturity securities

 

41,326

 

 

41,309

 

 

41,295

 

 

41,274

 

 

41,293

 

 
Loans

 

946,411

 

 

941,124

 

 

945,389

 

 

924,761

 

 

907,685

 

Allowance for Credit Losses (a)

 

(11,648

)

 

(11,647

)

 

(11,638

)

 

(11,468

)

 

(10,626

)

Net Loans

 

934,763

 

 

929,477

 

 

933,751

 

 

913,293

 

 

897,059

 

 
Premise & Equipment

 

13,994

 

 

14,686

 

 

14,842

 

 

14,098

 

 

12,347

 

Goodwill and Other Intangibles

 

4,930

 

 

4,934

 

 

4,936

 

 

4,942

 

 

4,947

 

Other Assets

 

43,069

 

 

44,653

 

 

43,851

 

 

40,588

 

 

41,841

 

Total Assets

$

1,265,036

 

$

1,268,806

 

$

1,285,054

 

$

1,301,994

 

$

1,282,568

 

 
 
Liabilities & Shareholders’ Equity
Non-interest-bearing Deposits

$

443,070

 

$

457,723

 

$

442,078

 

$

460,667

 

$

478,519

 

Interest-bearing Deposits

 

606,612

 

 

643,750

 

 

640,359

 

 

638,986

 

 

685,008

 

Total Deposits

 

1,049,682

 

 

1,101,473

 

 

1,082,437

 

 

1,099,653

 

 

1,163,527

 

 
Borrowed Funds

 

103,000

 

 

63,000

 

 

98,000

 

 

98,000

 

 

18,000

 

Other Liabilities

 

11,715

 

 

11,976

 

 

11,819

 

 

12,785

 

 

13,945

 

Total Liabilities

 

1,164,397

 

 

1,176,449

 

 

1,192,256

 

 

1,210,438

 

 

1,195,472

 

 
Common Stock

 

67,388

 

 

67,108

 

 

66,836

 

 

67,411

 

 

66,346

 

Retained Earnings

 

54,177

 

 

51,972

 

 

49,324

 

 

46,251

 

 

44,672

 

Other Capital

 

(20,926

)

 

(26,723

)

 

(23,362

)

 

(21,075

)

 

(23,922

)

Total Shareholders’ Equity

 

100,639

 

 

92,357

 

 

92,798

 

 

91,556

 

 

87,096

 

 
Total Liabilities & Shareholders’ Equity

$

1,265,036

 

$

1,268,806

 

$

1,285,054

 

$

1,301,994

 

$

1,282,568

 

 
Note:
(a) CECL was adopted using the modified retrospective method. Results of reporting periods beginning after 1/1/23 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP.
American Riviera Bancorp and Subsidiaries
Statement of Income (unaudited)
(dollars in thousands, except per share data)

Quarter Ended

 

Year Ended

December 31,

 

December 31,

 

 

 

December 31,

 

December 31,

 

 

 

2023

 

 

 

2022

 

 

Change

 

 

2023

 

 

 

2022

 

 

Change

Interest Income
Interest and Fees on Loans

$

12,555

 

$

11,081

 

13

%

$

47,683

 

$

39,196

 

22

%

Fees on PPP Loans

 

2

 

 

 

100

%

 

3

 

 

1,321

 

-100

%

Interest on Securities

 

1,751

 

 

1,716

 

2

%

 

6,940

 

 

5,212

 

33

%

Interest on Due From Banks

 

293

 

 

1,323

 

-78

%

 

1,055

 

 

3,049

 

-65

%

Total Interest Income

 

14,601

 

 

14,120

 

3

%

 

55,681

 

 

48,778

 

14

%

 
Interest Expense
Interest Expense on Deposits

 

2,735

 

 

669

 

309

%

 

8,488

 

 

1,362

 

523

%

Interest Expense on Borrowings

 

863

 

 

169

 

411

%

 

2,907

 

 

570

 

410

%

Total Interest Expense

 

3,598

 

 

838

 

329

%

 

11,395

 

 

1,932

 

490

%

 
Net Interest Income

 

11,003

 

 

13,282

 

-17

%

 

44,286

 

 

46,846

 

-5

%

Provision for Credit Losses

 

 

 

109

 

-100

%

 

171

 

 

1,147

 

-85

%

Net Interest Income After Provision

 

11,003

 

 

13,173

 

-16

%

 

44,115

 

 

45,699

 

-3

%

 
Non-Interest Income
Service Charges, Commissions and Fees

 

525

 

 

522

 

1

%

 

2,219

 

 

2,467

 

-10

%

Other Non-Interest Income

 

(257

)

 

157

 

-264

%

 

257

 

 

880

 

-71

%

Total Non-Interest Income

 

268

 

 

679

 

-61

%

 

2,476

 

 

3,347

 

-26

%

 
Non-Interest Expense
Salaries and Employee Benefits

 

4,838

 

 

4,948

 

-2

%

 

18,966

 

 

18,300

 

4

%

Occupancy and Equipment

 

907

 

 

856

 

6

%

 

3,542

 

 

3,155

 

12

%

Other Non-Interest Expense

 

2,485

 

 

2,561

 

-3

%

 

9,579

 

 

8,834

 

8

%

Total Non-Interest Expense

 

8,230

 

 

8,365

 

-2

%

 

32,087

 

 

30,289

 

6

%

 
Net Income Before Provision for Taxes

 

3,041

 

 

5,487

 

-45

%

 

14,504

 

 

18,757

 

-23

%

Provision for Taxes

 

838

 

 

1,524

 

-45

%

 

3,991

 

 

5,263

 

-24

%

Net Income

$

2,203

 

$

3,963

 

-44

%

$

10,513

 

$

13,494

 

-22

%

 
Shares Outstanding

 

5,768,697

 

 

5,692,161

 

1

%

 

5,768,697

 

 

5,692,161

 

1

%

Earnings Per Share – Basic

$

0.38

 

$

0.70

 

-45

%

$

1.82

 

$

2.38

 

-23

%

Return on Average Assets

 

0.69

%

 

1.14

%

-39

%

 

0.82

%

 

1.00

%

-18

%

Return on Average Equity

 

9.36

%

 

19.12

%

-51

%

 

11.02

%

 

15.81

%

-30

%

Net Interest Margin

 

3.61

%

 

3.94

%

-8

%

 

3.63

%

 

3.54

%

3

%

 
American Riviera Bancorp and Subsidiaries
Five Quarter Statements of Income (unaudited)
(dollars in thousands, except per share data)

Quarters Ended

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

2023

 

2023

 

2023

 

2023

 

2022

Interest Income
Interest and Fees on Loans

$

12,555

 

$

12,134

$

11,794

$

11,200

$

11,081

Fees on PPP Loans

 

2

 

 

 

 

1

 

Interest on Securities

 

1,751

 

 

1,664

 

1,792

 

1,733

 

1,716

Interest on Due From Banks

 

293

 

 

221

 

265

 

276

 

1,323

Total Interest Income

 

14,601

 

 

14,019

 

13,851

 

13,210

 

14,120

 
Interest Expense
Interest Expense on Deposits

 

2,735

 

 

2,514

 

1,965

 

1,274

 

669

Interest Expense on Borrowings

 

863

 

 

618

 

1,006

 

421

 

169

Total Interest Expense

 

3,598

 

 

3,131

 

2,971

 

1,695

 

838

 
Net Interest Income

 

11,003

 

 

10,888

 

10,880

 

11,515

 

13,282

Provision for Credit Losses

 

 

 

8

 

163

 

 

109

Net Interest Income After Provision

 

11,003

 

 

10,880

 

10,717

 

11,515

 

13,173

 
Non-Interest Income
Service Charges, Commissions and Fees

 

525

 

 

467

 

764

 

463

 

522

Other Non-Interest Income

 

(257

)

 

225

 

222

 

66

 

157

Total Non-Interest Income

 

268

 

 

692

 

987

 

529

 

679

 
Non-Interest Expense
Salaries and Employee Benefits

 

4,838

 

 

4,599

 

4,588

 

4,942

 

4,948

Occupancy and Equipment

 

907

 

 

862

 

868

 

905

 

856

Other Non-Interest Expense

 

2,485

 

 

2,452

 

2,508

 

2,134

 

2,561

Total Non-Interest Expense

 

8,230

 

 

7,912

 

7,964

 

7,981

 

8,365

 
Net Income Before Provision for Taxes

 

3,041

 

 

3,660

 

3,740

 

4,063

 

5,487

Provision for Taxes

 

838

 

 

1,011

 

1,052

 

1,090

 

1,524

Net Income

$

2,203

 

$

2,649

$

2,688

$

2,973

$

3,963

 
Shares Outstanding

 

5,768,697

 

 

5,771,679

 

5,772,012

 

5,763,854

 

5,692,161

Earnings Per Share – Basic

$

0.38

 

$

0.46

$

0.47

$

0.52

$

0.70

 
Net Income pre-tax, pre-provision, pre-PPP fees (Non-GAAP)

$

3,039

 

$

3,668

$

3,902

$

4,062

$

5,596

American Riviera Bancorp and Subsidiaries
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)

At or for the Quarters Ended

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

Income and performance ratios:
Net Income

$

2,203

 

$

2,649

 

$

2,688

 

$

2,973

 

$

3,963

 

Earnings per share – basic (f)

 

0.38

 

 

0.46

 

 

0.47

 

 

0.52

 

 

0.70

 

Return on average assets

 

0.69

%

 

0.80

%

 

0.85

%

 

0.98

%

 

1.14

%

Return on average equity

 

9.36

%

 

10.98

%

 

11.84

%

 

14.22

%

 

19.12

%

Cost of Funds

 

1.23

%

 

1.06

%

 

1.02

%

 

0.59

%

 

0.26

%

Cost of Deposits

 

1.00

%

 

0.90

%

 

0.73

%

 

0.45

%

 

0.21

%

Net interest margin

 

3.61

%

 

3.47

%

 

3.51

%

 

3.76

%

 

3.94

%

Efficiency ratio (b)

 

73.01

%

 

68.79

%

 

66.97

%

 

65.52

%

 

60.21

%

 
Asset quality:
Allowance for credit losses

$

11,648

 

$

11,647

 

$

11,638

 

$

11,468

 

$

10,626

 

Nonperforming assets

 

595

 

 

2,708

 

 

2,818

 

 

2,955

 

 

3,066

 

Allowance for credit losses / total loans and leases

 

1.23

%

 

1.24

%

 

1.23

%

 

1.24

%

 

1.17

%

Net charge-offs / average loans and leases (annualized)

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Texas ratio (a)

 

0.71

%

 

2.73

%

 

2.83

%

 

3.01

%

 

3.30

%

 
Capital ratios for American Riviera Bank (c):
Tier 1 risk-based capital

 

12.62

%

 

12.14

%

 

12.02

%

 

11.96

%

 

11.85

%

Total risk-based capital

 

13.77

%

 

13.28

%

 

13.17

%

 

13.12

%

 

12.89

%

Tier 1 leverage ratio

 

10.62

%

 

10.12

%

 

9.95

%

 

9.67

%

 

8.83

%

 
Capital ratios for American Riviera Bancorp(c):
Tier 1 risk-based capital

 

10.94

%

 

10.52

%

 

10.39

%

 

10.32

%

 

10.22

%

Total risk-based capital

 

13.72

%

 

13.31

%

 

13.22

%

 

13.21

%

 

12.99

%

Tier 1 leverage ratio

 

9.21

%

 

8.77

%

 

8.60

%

 

8.32

%

 

7.62

%

Tangible common equity ratio

 

7.60

%

 

6.92

%

 

6.86

%

 

6.68

%

 

6.43

%

 
Equity and share related:
Common equity

$

100,639

 

$

92,357

 

$

92,798

 

$

91,556

 

$

87,096

 

Book value per share

 

17.45

 

 

16.00

 

 

16.08

 

 

15.88

 

 

15.30

 

Tangible book value per share

 

16.59

 

 

15.15

 

 

15.22

 

 

15.03

 

 

14.43

 

Tangible book value per share, excluding AOCI (d)

 

20.22

 

 

19.78

 

 

19.27

 

 

18.68

 

 

18.63

 

Stock closing price per share

 

16.50

 

 

16.15

 

 

15.20

 

 

16.81

 

 

17.00

 

Number of shares issued and outstanding

 

5,768.70

 

 

5,771.68

 

 

5,772.01

 

 

5,763.85

 

 

5,692.16

 

 
Notes:
(a) The sum of Nonperforming assets and Other Real Estate Owned, divided by the sum of Total Shareholder Equity and Total Allowance for Credit Losses (less Preferred Stock and Intangible Assets).
(b) Annualized Operating Expense excluding Provision for Credit Losses minus Annualized Extraordinary Expense, divided by Annualized Interest Income including Loan Fees minus Annualized Interest Expense plus Annualized Non-Interest Income minus Annualized Extraordinary Income, expressed as a percentage.
(c) Current period capital ratios are preliminary.
(d) Accumulated Other Comprehensive Income (AOCI), is comprised of the tax adjusted unrealized loss on securities and is presented as Other Capital on the Balance Sheet.

Contacts

American Riviera Bank

www.americanriviera.bank
805-965-5942

Michelle Martinich

Read full story here